BILL OF LADING (BL or BoL)

What is Bill of Lading?

- Bills of Lading are cited frequently in shipping
and trade documents; especially when there are
cross border transactions or the movement of
goods overseas.
- It is a list of the cargo which a ship is carrying as
a receipt; provided by the master of the ship to
the person who is consigning the goods.
- BLs are issued by a carrier of goods to
acknowledge that they are in receipt of cargo for
shipment.
BILL OF LADING (BL or BoL)

What is the criteria for a

Bill of Lading?
There is the requirement for a bill of lading to be
negotiable, and it is widely seen to have three main
purposes:
• a definitive receipt (goods are loaded)
• terms of carriage contract
• document of title to goods
 BILL OF LADING (BL or BoL)
“Bills of lading are used to make sure that exporters are paid and importers receive goods. We will also usually see
a policy of insurance and invoice for the goods. It is important to note that a bill of lading is negotiable, but a policy
and invoice are assignable.”
BILL OF LADING (BL or BoL)

There are two types of bill of lading:

• On board bill of lading: this is when there is no discrepancy in what the description of the shipper
sets out and the product that is actually on the vessel.
• A clean bill of lading: shows that goods have been loaded on board. However, if the carrier realises
that the bill of lading is different from goods on board then evidence can be cited on the clean bill of
lading.

*Note: That once the bill of lading is transferred to a third party, there is no possible way to mark a
discrepancy.
BILL OF LADING (BL or BoL)

How are BLs transferred?

A bill of lading is transferable by endorsement or by the lawful transfer of possession. A carrier
must issue a bill of lading to the shipper which sets out the specification, quantity, nature and
quality.
BILL OF LADING (BL or BoL)
What is a BL used for?
It is a contract with conditions attached which is signed by the owner of the ship when the product is
loaded. There is an acknowledgement of the receipt of products, with the undertaking to deliver goods
at the end of the shipment.
BILL OF LADING (BL or BoL)
What do you track and prove of a Bill of Lading?
Bills of lading come into use when goods are moving and a transfer of title happens. Therefore they are
used as a receipt; which is issued by the carrier when the product has been loaded onto a vessel. We
constantly see BLs mentioned when looking at proof of shipments; especially in relation to customs and
insurance. It is also used as commercial proof to show agreements have been fulfilled.